Using Outdated Time Keeping Records Can Lead to Large Judgments
Wage and hour laws prohibit employers from paying employees for fewer hours than they worked. They prohibit employers from misclassifying employees as contract workers instead of employees or salaried instead of hourly employees. They prohibit employers from paying proper overtime for hourly employees when they work over 40 hours a week.
The courts have sided with employees repeatedly, stating that bad payroll records do not excuse violations of wage and hour laws. The courts do not care that your methods of keeping payroll are outdated. They care that employees are not receiving the money they are entitled to receive.
Learn more about how you can ensure your employees receive appropriate pay to keep you and your business out of court.
Is Your Time-Keeping System Manual?
Your timekeeping system must be accurate to help you keep precise payroll records. Before technology was in place to allow precise timekeeping methods, many companies used manual timekeeping systems. Employees would use a card and timestamp it when they came into the workplace. They would timestamp it again when they left for breaks or the end of the day.
Managers and supervisors would enter the timeclock records into their payroll system. In theory, the system works. However, errors can occur easily. Human error can create problems with data entry, shorting employees the money they rightfully deserved for the hours they worked.
Are Your Employees Properly Classified?
You may do your best to classify your employees properly. However, as a business owner, you may not know all the rules of employee classification. You may think that your administrative assistant is so specialized in her field that she can meet the criteria of a salaried employee. You may think that your employee who has a contract to help with a specific project is a sub-contractor as opposed to an employee.
Even if your intentions are good, your mistakes can work in your employee’s favor. Your lack of legal knowledge and HR expertise is no excuse to misclassify your employees. The courts will not look at your reason for your classification if the reason is a simple lack of proper knowledge.
How Can You Correct Your Payroll Problems?
Payroll and timekeeping technology has come a long way in the past ten years. Manual timekeeping systems are no longer necessary. They are no longer the preferred system of payroll and timekeeping.
Employers now have the option to use electronic systems to help employees track their time. They simply enter their personalized number into an electronic portal, and timekeeping records are automatically entered into an electronic database.
Employers can even keep records through a wi-fi connection when an employee logs in and out of their computer. They can also use a cellphone app. The technology can be so advanced that as soon as the employee logs on, the system begins keeping track of their hours worked. The system can automatically upload the time records to the proper payroll system to calculate the payroll for the week.
Finally, you can work with a qualified human resources team to ensure your employees and contractors are properly classified, and all payroll-related laws are followed. As the laws change, your HR team will ensure you remain compliant and your employees are compensated appropriately.
If you need an HR team you can trust to help you maintain your employee payroll and handle other employee issues, contact the experts at Workplace HCM at 856.334.9711.
